Heer's developer being sued by state over St. Louis project

Attorney General Chris Koster claims Kevin McGowan and another owner owe the state $2.4 million

Sep. 10, 2012

Developer Kevin McGowan, left, talks about his plans for the Heers Building as Nancy Dornan, former Mayor Tom Carlson and Tim Rosenbury left to right in the center, listen. / News-Leader, file photo 2007

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News-Leader Staff

The state of Missouri filed a lawsuit Friday, claiming Heer’s developer Kevin McGowan and a co-owner wrongfully obtained $2.4 million in state tax credits.

According to a news release from Attorney General Chris Koster’s office, McGowan and Nathaniel S. Walsh, working together as Ballpark Lofts I, LLC, were granted the $2.4 million in credits for a loft project in downtown St. Louis.

The credits were granted to offset the cost of removing lead-based paint in the building, known as the Cupples 9 development.

Lafser & Asociates, Inc., a consultant hired by Ballpark, told state authorities that the lead had been entirely removed in March 2010, the news release said.

But after the Cupples 9 property was later sold via foreclosure, the new owner found evidence of lead-based paint. The Department of Natural Resources then inspected the property and found “unacceptable” levels of lead, the news release said.

The state is now suing Ballpark because the tax credits can no longer be canceled. According to the news release, Ballpark sold the tax credits to a third, unnamed party.

McGowan told the News-Leader in July that plans for the Heer’s renovation were indefinitely shelved.

"As long as the economy stays mired in the muck ... we continue to wait," he said, noting that another of his companies, Blue Urban, hasn't renovated a building in several years.